Outcomes vs outputs: Understanding the difference and why it matters

Outcomes and outputs are buzzing around in the world of product management and business for a reason. With teams now often remote or spread out, managers and leaders need new ways to guide their teams and see the impact they're making. That's why there's a shift happening—from focusing mainly on outputs to paying more attention to outcomes.

When everyone rallies around the outcomes we're aiming for, it becomes easier to manage, boost productivity, and keep the team focused on what really matters. Clear outcomes give meaning to the outputs and act as a guiding star for everything we do.

Grasping the difference between an outcome and an output is key to hitting your goals and achieving success. In this article, we’ll dive deeper into what sets outcomes and outputs apart and how they work together.

What is an outcome?

An outcome is the result or impact of an action or project. It's the change or benefit that happens after a project is completed. Outcomes are usually about the benefits to the end-user or the business. For example, the outcome of a marketing campaign might be increased sales, higher customer satisfaction, or better brand recognition. These are the tangible improvements that show whether your efforts are making a real difference. Outcomes are crucial because they're the ultimate goals you want to achieve, reflecting the value your project brings to the table.

It's important to have clear and measurable outcomes in mind before starting any project. This clarity helps guide your team and keeps everyone focused on the end goal. Defining these outcomes also provides a benchmark against which you can measure success.

Tracking outcomes often involves using a success metric, which you check periodically to ensure progress toward your outcome over time. This regular monitoring helps you stay on course, make necessary adjustments, and ensure that your efforts are indeed moving you closer to your desired results. By keeping a close eye on these metrics, you can confidently steer your projects towards achieving meaningful and impactful outcomes.

Outcome examples

• Increase our Daily Active Users by 25%
• Improve our onboarding flow by raising the conversion rate to 9.5%
• Get 1,000 customers by the end of the quarter

What is an output?

Outputs are the tangible deliverables or results that come out of a project. They’re often the tasks or activities needed to achieve the desired outcome. Some call them initiatives, projects, or tasks. Essentially, the goal for an output is to get it from to-do to done as efficiently as possible, without necessarily tracking progress over time. Outputs are the building blocks that make up the larger structure of your project, ensuring that each component is completed and contributes to the overall goal.

For example, the outputs of a marketing campaign might include a new website design, social media posts, or email newsletters. These are the specific, tangible products that your team creates and delivers. Outputs are crucial because they’re the concrete steps you need to take to reach your desired outcome. Without clear outputs, your projects would lack the necessary structure and milestones needed to achieve success.

Outputs provide a clear pathway and tangible evidence of progress. They help teams stay organised, maintain momentum, and ensure that every task is contributing to your larger strategic objectives. By focusing on creating and delivering high-quality outputs, you can build a strong foundation for achieving your ultimate goals.

Output examples

• Create a new landing page test to try and raise conversion rates
• Document all the new feature changes to use in the upcoming newsletter
• Remove all unused subscriptions to lower our burn rate

Outputs vs outcomes: How are they related?

The main difference between outcomes and outputs is that outcomes are the changes or benefits that result from a project or action, while outputs are the tangible deliverables or results produced by the project or task. In simpler terms, outcomes are the "what" you want to achieve, and outputs are the "how" you achieve it. Outcomes represent the end goals, such as increased sales or improved customer satisfaction, while outputs are the specific actions or products, like launching a new website or creating marketing materials, that help you reach those goals.

Ideally, you and your team would start with a desired outcome and then decide on the outputs that will help achieve that outcome. This approach ensures that every task and deliverable is aligned with your ultimate objectives, providing a clear direction and purpose for your efforts.

You might hear people saying "outcomes over outputs," suggesting that you should focus more on outcomes than outputs, but the truth is that the two are closely connected. Like two sides of the same coin, you need outcomes to aim for to ensure you have the right outputs, and you need the right outputs to make progress toward that outcome. Both are essential components of a successful project. Outcomes provide the vision and purpose, while outputs represent the actionable steps needed to turn that vision into reality. Understanding and balancing both aspects will help you achieve meaningful and impactful results.

Also check out: Optimise your productivity: Understanding tasks, projects, and goals for peak performance

Putting it into practice

Start by defining your outcomes and then identify the outputs needed to achieve them. This might sound easier said than done, but there are plenty of examples and tips out there to help you get on the right track. Tools like Tability can take you from just an idea to a detailed plan of outcomes and outputs in minutes, all with the help of AI.

Many teams today are using the OKR (Objectives and Key Results) methodology to focus more on outcomes. OKRs naturally direct your efforts toward outcomes because the process guides teams to improve specific success metrics that they believe will help them achieve their business goals. This structured approach ensures that every task and initiative aligns with the broader objectives, fostering a more cohesive and goal-oriented team dynamic.

By starting with clear outcomes and mapping out the necessary outputs, you create a roadmap that keeps your team focused and motivated. This practice not only clarifies what needs to be done but also why it matters, enhancing both productivity and morale. Utilising frameworks like OKRs and tools like Tability simplifies this process, making it more accessible and manageable for teams of all sizes.

Incorporating these strategies into your workflow can significantly boost your team's ability to deliver meaningful results. By continuously aligning your outputs with your desired outcomes, you ensure that every effort contributes to achieving your overarching goals.

See how strategic initiatives can be mapped to OKRs

Becoming an outcome-driven team

Outcomes and outputs are not the same. Outcomes are the changes or benefits that result from a project or action, while outputs are the tangible deliverables or results produced by the project or action. Becoming an outcome-driven team means starting with outcomes and understanding that the outputs should help you achieve those outcomes. This approach is crucial for achieving success, tracking progress, and communicating effectively.

When you start by defining your outcomes and then identify the outputs needed to achieve them, your team gains better direction and focus. This clarity helps everyone understand the purpose behind their tasks and how their work contributes to the bigger picture. It encourages prioritisation based on achieving meaningful results rather than just completing tasks for the sake of activity.

Adopting an outcome-driven mindset involves continuously aligning your outputs with your desired outcomes. This practice not only enhances productivity but also fosters a culture of accountability and purpose. Teams become more motivated when they see how their efforts directly impact the success of their projects and the organisation as a whole.

Understanding the difference between outcomes and outputs, and strategically aligning them, transforms your team’s approach to work. It shifts the focus from merely getting things done to achieving significant, impactful results. This transformation is key to long-term success and sustained growth.

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